According to an article in Advertising Age, a NY-based Ad Agency is suing a blogger for copyright infringement, defamation and trade libel and injurious falsehood. Appears that the blogger, Lance Dutson, made negative remarks about the agency on his blog that revolved around the agency’s work for the Maine Office of Toursim. The agency apparently tried to get Mr. Dutson to remove the remarks and apologize. He said no. They sued. Repeat after me, “Never, never, underestimate the power of the blog for unintended consequences.”
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Unforunately for the agency, the blogosphere flew to Mr. Dutson’s plight like bees to honey. According to Mr. Dutson’s latest post on his site, more than 200 blogs are now referencing him compared to just 2 before the suit. Seems that the negative PR to the agency from the cumulative effects of bloggers may have surpassed the harm they suffered from Mr. Dutson’s original comments. At the very least, there are a lot of eyes reading this story that would never have seen the original comments on Mr. Dutson’s blog.
This is another example of how blogging can alter the historical power dynamics of business. I don’t know anything about the financial strength of either Mr. Dutson nor the ad agency but if I was a wagering man (which I am), I would guess that the agency has the resources to use the legal system to make Mr. Dutson spend a lot of money on his defense. This is a common practice in the legal profession and explains why many small firms back away from challenging the entrenched larger firms even when the small fish have good cases. Bottom line is that it takes a LOT of money to litigate a dispute and power goes to those that can afford it. Justice is blind but it ain’t cheap.
While Mr. Dutson will certainly spend some money on attorney fees, it cost him NOTHING to have positive PR spread across the Web. In the old days (like a couple years ago), litigating a case in the press would require the press to actually want you to win. In the blogosphere, Mr. Dutson does not need to worry about the political will or economics of the traditional press to get “web time.” And there is NOTHING that the agency can do about this. The cannot enjoin the collective blogosphere from commenting on this case and opining on its merits or what they think about the agency themselves.
In the end, this is just one example of how blogging can play a part in leveling the business playing field.
How does this impact the real estate industry? Many of us who are (as we like to think) “in the know” debate about the future of real estate, about the new oohs and ahhs in real estate technology and the tidal wave of change that is looming. But the average joe or jane knows nothing about this stuff – yet. They buy and sell homes each and every day just like they did for the last 20 years. As blogs proliferate, so too will communication about the new and the old, and the good and the bad, in real estate. Average joes and janes will spread their opinions about new companies and new offerings and just like the ad agency, there will be an impact on how business is done.
Visionary brokers will figure this out and harness the immense power of social networking. Others, like the ad agency, will operate at its mercy.
How about visionary attorneys, Russ? Give yourself a little credit…
Craig
Russ – you have me walking on egg shells about blogging.:)
That’s why I e-mailed you last evening about this news before this story hit the news in today’s Seattle Times (Business & Technology).
Merit Financial, located in Kirkland and one of the regions largest mortgage companies met with 300 staff this morning to announce it’s doors closing and ponder bankruptcy.
CEO, Scott Greenlaw (former UW football star), just a couple years earlier was named one of the brightest “CEO’s under 40.” Washington CEO Magazine, name Merit Financial one of the best companies to work for in Washington.
IMHO, I wonder who’s next? Ameriquest closed 29 offices in Washington yesterday and told staff to call 1-800 #’s for information on transactions in progress and to collect personal effects.
Tim, I have noticed that you mention companies by name when telling real life “horror” stories of escrow problems. Best to tell the story without mentioning the offending company by name.
There’s an old saying that if you stick your neck out too far, it just might get chopped off. The image used to add clarification is that of a turtle sticking his head out of his shell and someone wanting turtle soup being in close proximity.
Bloggers, especially those who are not anonymous, are sticking their necks out for sure. Unless they are simply pulling little blurbs from news items around the world without editorial comment.
I think Grow A Brain is likely the best example of a high popularity, low risk, blog.
Ardell, it weighs heavily on my mind everyday. You bring up an excellent point. And, in my opinion, is one of the reasons that many Realtors do not comment, unless anonymously. I think they are worried about other agents who would ridicule them if they had a differing opinion. A shame if you ask me. But, that’s the competitive juices of the biz.
Just today, we were asked to meet with one of the largest real estate companies in the Northwest (not CBB because they would throw tomatoes at us as they have their own escrow offices) to rub elbows a bit and let the staff know we exist. And, this very issue came up about blogging. In our dicusssion, they wanted to know about the issues and real life transaction snafu’s that go on. They were enthusiastic about the real life stories via our own blog. It helps people understand what goes on and what they can do to avoid problems in the future. We would never discuss specific transaction details including naming agents, loan officers etc. I can’t go into an r.e. or lenders office too much these days without overhearing staff talk about transactions– who did this and who did that. It’s part of the r.e. culture.
For example, the mentioning of a title company in my prior comment was due to the so unbelievably strange and unique circumstances, that it would be less impactual, particularly after Russ’s comments on corporate fears of blogging, to not let readers know about the company. One e-mail to me said that it wouldn’t be believable it if I didn’t name the company. Others sent lovely epithets and curses. And, yes, they are competitors. Our competitors are everywhere. I can’t go a mile without bumping into a broker owned escrow firm, title company or lender owned escrow co.
I mentioned to someone who blasted our company a while ago that they should start a blog called: Why I hate Legacy Escrow. When we first started the company in fall of 03′ I remember talking to an agent when we first opened who said they would never use Legacy Escrow due to our poor service. What??? We closed like 4 deals in our first two months and those were probably from the First Horizon folks upstairs who felt sorry for us. Nobody even knew about us! Funny stuff. Folks that’s at $495 bucks/deal. We went in and out of business like five times, but don’t tell our landlord. They may think were loaded. I mean, who else would be dumb enough to start an escrow company in October, not knowing a soul in the biz.
I appreciate you looking out for me Ardell. Starbucks is in the mail.
Gosh it’s nice outside! Enjoy the weather!
Ardell, it weighs heavily on my mind everyday. You bring up an excellent point. And, in my opinion, is one of the reasons that many Realtors do not comment, unless anonymously. I think they are worried about other agents who would ridicule them if they had a differing opinion. A shame if you ask me. But, that’s the competitive juices of the biz.
Just today, we were asked to meet with one of the largest real estate companies in the Northwest (not CBB because they would throw tomatoes at us as they have their own escrow offices) to rub elbows a bit and let the staff know we exist. And, this very issue came up about blogging. In our dicusssion, they wanted to know about the issues and real life transaction snafu’s that go on. They were enthusiastic about the real life stories via our own blog. It helps people understand what goes on and what they can do to avoid problems in the future. We would never discuss specific transaction details including naming agents, loan officers etc. I can’t go into an r.e. or lenders office too much these days without overhearing staff talk about transactions– who did this and who did that. It’s part of the r.e. culture.
For example, the mentioning of a title company in my prior comment was due to the so unbelievably strange and unique circumstances, that it would be less impactual, particularly after Russ’s comments on corporate fears of blogging, to not let readers know about the company. One e-mail to me said that it wouldn’t be believable it if I didn’t name the company. Others sent lovely epithets and curses. And, yes, they are competitors. Our competitors are everywhere. I can’t go a mile without bumping into a broker owned escrow firm, title company or lender owned escrow co.
I mentioned to someone who blasted our company a while ago that they should start a blog called: Why I hate Legacy Escrow. When we first started the company in fall of 03′ I remember talking to an agent when we first opened who said they would never use Legacy Escrow due to our poor service. What??? We closed like 4 deals in our first two months and those were probably from the First Horizon folks upstairs who felt sorry for us. Nobody even knew about us! Funny stuff. Folks that’s at $495 bucks/deal. We went in and out of business like five times, but don’t tell our landlord. They may think were loaded. I mean, who else would be dumb enough to start an escrow company in October, not knowing a soul in the biz.
I appreciate you looking out for me Ardell. Starbucks is in the mail.
Gosh it’s nice outside! Enjoy the weather!
Great post Tim! To use Ardell’s analogy, we need more turtles to stick out their necks these days. That’s what moves our world forward.
Russ
Russ, I have taken the stance, since 1998 or so, that buyers rights needed to be strengthened in the real estate marketplace. Namely, the buyer’s side of the commission should be on the buyer’s side of the HUD 1. Buyers who deal with listing agents as “customers” should sign a separate statement acknowledging their awareness that they are NOT represented in the transaction. The latter being key, as Dual Agency requires written consent of all parties. I think NO representation should also require that the consumer sign a clear acknowledgement of that fact, and not just a couple of check marks on page one.
I always liked the old, now rescinded, Florida statement handed to buyers “I DO NOT represent you, until and unless YOU HIRE ME to do so.” That was simple enough. You could print it right on a business card. I’m pretty sure Florida rescinded that, but personally, I LOVED it!.
However here in the Seattle area it seems that there is a large contingent of buyers who do not want to be protected by agency laws. They want the buyer agent fee and they want to represent themselve in order to get that money. I’m just wondering if our agency explanations in place clearly explain the NO agency option well enough for buyers to be making an informed choice in that regard.
So if we agree that sticking our necks out to move things forward is needed, has what we are sticking our necks out about changed? Are we asking for better agency protections and explanations of agency to describe the NO agency option? Are we asking for the buyers right to go around the buyer agent straight to the listing agent to save money? I have always leaned toward the former, but it seems there are forces in play leaning towards the latter.
I would appreciate anyone’s thoughts on this, not just Russ’. Thanks.
Ardell,
Teaching a class right now….be back soon.
Russ
Hi Ardell,
Dustin and I made the previous post during our class today to show how all of this stuff works.
It may be late and I drove 6 hours today (to PDX and back) so I am a bit loopy but I don’t understand your question. I am not sure who is asking for what.
Russ
Hi Ardell,
Dustin and I made the previous post during our class today to show how all of this stuff works.
It may be late and I drove 6 hours today (to PDX and back) so I am a bit loopy but I don’t understand your question. I am not sure who is asking for what.
Russ
There is SO much more here than meets the eye..
If only you knew the truth.
http://bangorreports.blogspot.com/